|
7) Convertible Debentures
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 7) Convertible Debentures | 7) CONVERTIBLE DEBENTURES
1On January 24, 2013, the Company borrowed $100,000 from an unrelated party pursuant to convertible debenture agreements. The debentures bear interest at 8.0% per annum and have a term of one year, maturing on January 24, 2014. The loan agreement provides for the right of the holder to convert the loan principal and interest into shares of common stock at a stated conversion price of the average of the three lowest daily trades in the previous 20 days with a 50% discount.
2On April 22, 2013 the Company borrowed $15,000 from an unrelated party pursuant to convertible debenture agreement. The debentures bear interest at 6% per annum and have a term of one and a quarter years, maturing on August 31, 2014. The debentures are convertible into common stock at $0.25 per share.
3On May 24, 2013, the Company borrowed $30,000 from an unrelated party pursuant to convertible debenture agreements. The debentures bear interest at 10% per annum and have a term of one year, maturing on May 24, 2014. The loan agreement provides for the right of the holder to convert the loan principal and interest into shares of common stock at a stated conversion price of the average of the three lowest daily trades in the previous 20 days with a 50% discount.
4On July 19, 2013, the Company borrowed $40,000 from an unrelated party pursuant to convertible debenture agreements. The debentures bear interest at 10% per annum and have a term of one year, maturing on July 19, 2014. The loan agreement provides for the right of the holder to convert the loan principal and interest into shares of common stock at a stated conversion price of the average of the three lowest daily trades in the previous 20 days with a 50% discount.
5On July 31, 2013, the Company borrowed $53,000 from an unrelated party pursuant to convertible debenture agreements. The debentures bear interest at 8% per annum and have a term of nine months, maturing on April 24, 2014. The loan agreement provides for the right of the holder to convert the loan principal and interest into shares of common stock at a stated conversion price of the average of the two lowest daily trades in the previous 20 days with a 49% discount.
6On August 8, 2013 the Company borrowed $19,000 from a unrelated party pursuant to convertible debenture agreement. The debentures bear interest at 6% per annum and have a term of one year, maturing on August 8, 2014. The debentures are convertible into common stock at $0.25 per share.
7On August 13, 2013, the Company borrowed $30,000 from an unrelated party pursuant to convertible debenture agreements. The debentures bear interest at 10% per annum and have a term of one year, maturing on September 19, 2014. The loan agreement provides for the right of the holder to convert the loan principal and interest into shares of common stock at a stated conversion price of the average of the three lowest daily trades in the previous 20 days with a 50% discount.
8On August 16, 2013, the Company borrowed $10,000 from an unrelated party pursuant to convertible debenture agreements. The debentures bear interest at 10% per annum and have a term of one year, maturing on September 19, 2014. The loan agreement provides for the right of the holder to convert the loan principal and interest into shares of common stock at a stated conversion price of the average of the three lowest daily trades in the previous 20 days with a 50% discount.
9On August 21, 2013, the Company borrowed $35,000 from an unrelated party pursuant to convertible debenture agreements. The debentures bear interest at 10% per annum and have a term of one year, maturing on September 19, 2014. The loan agreement provides for the right of the holder to convert the loan principal and interest into shares of common stock at a stated conversion price of the average of the three lowest daily trades in the previous 20 days with a 50% discount.
10On September 4, 2013 the Company borrowed $4,750 from a unrelated party pursuant to convertible debenture agreement. The debentures bear interest at 6% per annum and have a term of one year, maturing on August 8, 2014. The debentures are convertible into common stock at $0.25 per share.
11On September 10, 2013, the Company borrowed $45,000 from an unrelated party pursuant to convertible debenture agreements. The debentures bear interest at 10% per annum and have a term of one year, maturing on September 19, 2014. The loan agreement provides for the right of the holder to convert the loan principal and interest into shares of common stock at a stated conversion price of the average of the three lowest daily trades in the previous 20 days with a 50% discount.
As of September 30, 2013 and December 31, 2012 convertible debentures consist of the following:
The Company accounted for the issuance of the convertible debenture in accordance with ASC 815” Derivatives and Hedging.” The debenture is convertible into an indeterminate number of shares for which the Company cannot determine if it has sufficient authorized shares to settle the transaction with. Accordingly, the embedded conversion option is a derivative liability and is marked to market through earnings at the end of each reporting period. |